MEXICO CITY (Aug. 20, 2010)—Callaway Golf Co. of Carlsbad, Calif., is building a 180,000-sq.-ft. plant in Monterrey, Mexico, that will make golf balls and assemble clubs.
The Monterrey project is part of Callaway's restructuring of global operations, announced July 27 and scheduled to last 18 months.
The restructuring includes reorganizing manufacturing and distribution centers in Carlsbad and Toronto, creating third-party logistics sites in Dallas and Toronto, and establishing the Monterrey production site.
At the end of the project, roughly half the company's manufacturing will be in Mexico and Asia, a spokesman said. Callaway already has several manufacturing sites in Asia, primarily in China.
“The redesign of Callaway's global operations creates a stronger, more flexible model that better positions our business for the future,” George Fellows, Callaway Golf's president and CEO, said in July.
The Monterrey plant will improve lead times to at least 65 percent of Callaway's customers in North America, while Callaway's international business, especially in Latin America, is on the increase, according to the company.
Callaway manufactures and sells golf clubs and golf balls under the Callaway Golf, Odyssey, Top-Flite, Ben Hogan and uPro brands in 110 countries. It also sells golf accessories.
A public company employing 2,300 worldwide, it reported net sales of $606 million in the first six months, up 6 percent over the same period last year.
Callaway has an estimated 12.8 percent share of the global golf-ball market, good enough for the No. 2 slot in most geographical regions, behind market leader Acushnet Co.'s Titleist, according to the Callaway spokesman. Acushnet is based in Fairhaven, Mass.
Callaway, he said, has the largest market share in irons and putters and is No. 2 in woods.
Golf balls have a solid rubber core and a thermoplastic cover.